We all know there are certain things that can increase the value of a property, and location is definitely one of them. But did you know that this can extend to the location of your local supermarket?
New research from Lloyds Bank has found that living close to a well-known supermarket can add around £22,000 to the value of your home, and some chains can add even more. Properties close to a Waitrose store, for example, receive the most significant boost of £38,666, making them 10% more expensive than typical properties in the same town (£425,428 vs. £386,763).
This isn't the only brand to deliver a price boost, however. Properties near a Sainsbury's, Marks and Spencer, Tesco or Iceland also command notable house price premiums of £27,939, £27,182, £22,072 and £20,034 respectively, and even living near an Asda (+£5,026), Lidl (+£3,926) or Aldi store (+£1,333) can have a notable effect.
Mike Songer, Lloyds Bank mortgage director, said that the findings "back-up the so-called 'Waitrose effect': there is definitely a correlation between the price of your home and whether it's close to a major supermarket or not, [and] the amount added to the value of your home can be even greater if located next to a brand which is perceived as upmarket".
He added that there are many other drivers of house prices beyond having a supermarket on your doorstep, but that it seems to be a strong factor, and this benefit can be even stronger in some parts of the country. For example, if you live in the North West, having a Waitrose in your vicinity could add a whopping £73,629 to the value of your home (up 39% compared with the surrounding area), so it could definitely pay to have this kind of upmarket convenience.
Is your property benefiting from a supermarket bonus? It could pay to get your home valued to see the true extent of that price boost, particularly if the supermarket is a recent addition or you're thinking about moving or remortgaging, as it could help ensure you get the perfect mortgage deal for your needs.
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.